Netflix : Delivering Value Through Innovation

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Netflix: Delivering Value through Innovation Netflix, “the company that revolutionized watching of movies and TV shows (Netflix Media Center, n.d.)” began in 1997 with CEO Reed Hastings creating an online based DVD subscription service. It quickly became a success through its low cost, fast delivery times and proprietary queue. The company went public in 2002 and continued to expand its membership and in 2007 introduced its online streaming service. Netflix currently boasts, “over 81 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films (Netflix Media Center n.d.)”. Netflix’s core competency is to deliver high quality, diverse entertainment directly to the consumer. In the beginning this meant not having to travel to your local video store (Blockbuster) and hoping that the store had the movie that the customer wanted. Netflix removed this from the customer’s routine, by mailing the latest DVDs directly to their door. Now, Netflix and its streaming based subscription allow the consumer to watch their choice of over thousands of programs anytime, anywhere, as many times as you want. The value proposition is the, “set of beliefs or values it (the company) promises to deliver to consumers to satisfy their needs (Armstrong & Kotler, 2013)”. Netflix promises to deliver their diverse and ever expanding content library to the consumer for a set monthly fee. Netflix builds

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